SIE practice questionmediumFINRA - Best Execution
Under FINRA rules, what must a broker-dealer do to meet the best execution obligation?
- AAlways route all orders to the NYSE
- BSeek the most favorable terms for the customer when executing orders✓ Correct answer
- CUse only affiliated market makers
- DDelay order execution until prices improve
Explanation
Why B — Seek the most favorable terms for the customer when executing orders
Best execution requires seeking the best available terms and prices, not always using the NYSE, using affiliates, or delaying execution.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Trading & Settlement questions
- What happens when a stop-limit order is triggered?
- A client wants to buy stock, but only if the price does not exceed $25. What order should they use?
- A fill-or-kill (FOK) order instructs a broker to:
- If the equity in a margin account falls below the maintenance requirement, what will the broker-dealer issue?